1) An efficiency expert claims that by introducing a new type of machinery into a production process, the time required for production can be decreased substantially. Because of the expense involved...

1)





An efficiency expert claims
that by introducing a new type of machinery into a production process, the time
required for production can be decreased substantially. Because of the expense
involved in maintenance of the machines, management feels that unless the
production time can be decreased by at least 8.0% they cannot afford to
introduce the process.

Six resulting
experiments show that the time for production is decreased by 8.4% with
standard deviation of 0.32%.

Using a level of
significance of 0.05, test the hypothesis that the new machine should be
introduced and construct the 95% confidence interval.

(20 MARKS)